In 1800’s when the Dutch East India Company used to transact in Asia the Indian Stock Market was the only and oldest stock market during that era. It started with trading Debt Securities.
In 1830’s, In Bombay Trading on Corporate Stocks and Shares of Bank and Cotton press was made. It start with the few brokers which were not more than half a dozen but the trading was gaining interest and volume among investors and common audience during 1840-1850’s era.
In 1850’s a group of 22 Brokers began to trade under a Banyan Tree opposite to the Town Hall of Mumbai. Each Broker has invested 1 Rupee at that time. This Banyan tree is still worshiped by many brokers and traders in the Horniman Circle Park in Mumbai, working in the stock market.
In 1860’s, the number of brokers expanded to 60, the “Stock Mania” or the so called “Share Mania” in India began. During the 1860’s an important event occurred “The American Civil War” which broke the supply of cotton from US to Europe. During the same decade the number of brokers expanded to 250.
In 1875 the then stock brokers gathered together The Stock Broker Association which then took the form of Bombay Stock Exchange (BSE). It is then was the first stock exchange in India was stoned at Bombay. It was the then only stock exchange in Asia and the Eastern World. BSE was shifted to the old building in the Town Hall.
In 1928, BSE bought the land (plot) on which till date BSE is standing (at the Bombay Samachar Marg and Hammam Street crossing the Dalal Street was Marked (Established).
In 1930’s a building for BSE was constructed on the above said land and titled Bombay Stock Exchange. The leading stock broker PremChand RoyChand use to set the trade rules and settlements, conventions and procedures for the trading of stocks at BSE and the same are still being respected and followed by the fellow members and brokers. During those days the stock broker firms use to have their name titled and styled in the name of the Head of the families as they were Family run Business viz., Jamnadas Morarjee (now known as JM), Champaklal Devidas (now known as Cifco Finance) and Brijmohan Laxminarayan.
In 1894 the Ahmadabad Stock Exchange was started to facilitate dealings in the shares of textile mills there. In 1908 the Calcutta Stock Exchange was started to facilitate dealings in the shares of plantations and jute mills.
In 1920 the Madras Stock Exchange was started to facilitate dealing example in the share of Ship Building and Agricultural produce companies. At some time in history there were more than 24 stock exchanges in the India, 21 of them being regional ones with allotted areas. Two others set up in the reform era, viz., the National Stock Exchange (NSE) and Over the Counter Exchange of India (OICEI), have mandate to have nation-wise trading. They were located at Ahmadabad, Vadodara, Bangalore, Bhubaneswar, Mumbai, Kolkata, Kochi, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana, Chennai, Mangalore, Meerut, Patna, Pune and Rajkot.